Following a memorandum of understanding signed and announced in February 2025, Anglo American, through Anglo American Sur, has agreed with Codelco to implement a joint mine plan for its respective copper mines, Los Bronces and Andina, in Chile.
The joint mine plan has been developed to unlock an additional 2.7 million tonnes of copper production over 21 years once relevant permits are in place, currently expected in 2030.
The expected additional copper production of c.120,000 tonnes per year is to be shared equally, with c.15% lower unit costs relative to standalone operations and with minimal incremental capital expenditure.
The transaction is expected to generate a pre-tax net present value uplift of at least $5bn, to be shared equally between AAS and Codelco.
Duncan Wanblad, CEO of Anglo American, said: “Copper is a vital resource for the global energy transition and is at the forefront of our growth ambitions.
“We are delighted to finalise this landmark agreement with Codelco, ushering in a new chapter for Los Bronces and Andina, which are two exceptional copper assets.”
A new operating company, jointly owned and jointly controlled by AAS and Codelco, will coordinate execution of the joint mine plan and optimise processing capacity across Los Bronces and Andina.
Copper production and the economic benefits generated under the plan—as well as associated costs and liabilities—will be shared equally between AAS and Codelco.
Each party will retain full ownership of its respective assets (including mining concessions, plants and ancillary infrastructure) and will continue to exploit its respective concessions separately.
Both Anglo American and Codelco will maintain the flexibility to develop separate standalone projects, including the advancement of underground resources, during the term of the joint mine plan in a coordinated and appropriate manner.
The companies have also established principles to guide the implementation of the joint mine plan, including sustainability principles which safeguard both social programmes and adherence to existing environmental commitments.
The transaction is subject to several conditions, including customary competition and regulatory approvals. The implementation of the joint mine plan is contingent upon securing the relevant environmental permits.
The shareholders of AAS are the Anglo American group (50.1%), the Mitsubishi Group (20.4%) and Becrux, a Codelco/Mitsui joint venture company (29.5%).